Balakrishnan told reporters here that the allegations are "absolutely incorrect" and these are being made and spread by "people with vested interests".
Justice (retd) P K Shamsuddin, who had served in the High Court along with the former Chief Justice of India in the Kerala High Court, told CNN-IBN that his resignation pending inquiry will be proper "since in people's mind there are many doubts against him."
The retired judge had said that a few years ago he was approached by a man in Bangalore who requested him to facilitate an introduction to Balakrishnan's son or son-in-law in connection with a case in the Supreme Court.
When mediapersons sought his reaction on the matter, Balakrishnan said, "Ask the person who has made the allegations, is he an agent?"
Shamsuddin had refused to make public the name of the person who approached him to get access to Balakrishnan but said he knew him well. "Till then I did not know that K G Balakrishnan was approachable," he had said.